May 8 (Bloomberg) -- CBS Corp., owner of the most-watched
television network, posted first-quarter earnings that beat
analysts’ estimates after buying back $2 billion of its stock
and selling shares in its U.S. billboard division.

Profit rose to 78 cents a share, New York-based CBS said
today in a statement. That compared with the 75-cent average of
25 analysts’ estimates. Sales fell 4.6 percent to $3.86 billion,
shy of analysts’ projections of $3.92 billion.

The decision to sell shares in the outdoor unit, turn the
business into a real estate investment trust and eventually
divest is giving the company about $5 billion for buybacks and
potential acquisitions. The steps put a positive sheen on a
quarter when ad sales fell 12 percent and CBS faced tough
comparisons after airing the Super Bowl in February 2013.

Net income in the quarter rose 5.6 percent to $468 million
from $443 million, or 69 cents, a year earlier, CBS said.

Advertising sales declined to $2.16 billion because of the
tough comparison, CBS said. Affiliate and subscription fees
increased 9.2 percent from a year earlier, the company said.
Content and licensing revenue increased 6.4 percent.

CBS, controlled by billionaire Sumner Redstone, fell 1.3
percent to $57.25 in extended trading after the announcement.
The stock advanced 2.4 percent to $58.01 at the close in New
York and has retreated 9 percent this year.

(CBS plans a conference call at 4:30 p.m. New York time.
See Investors/News & Events at www.cbscorporation.com to listen)